ERICSSON (LM) TEL-SP ADR (ERIC) Fundamental Analysis & Valuation

NASDAQ:ERIC • US2948216088

Current stock price

11.62 USD
+0.17 (+1.48%)
At close:
11.72 USD
+0.1 (+0.86%)
After Hours:

This ERIC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. ERIC Profitability Analysis

1.1 Basic Checks

  • ERIC had positive earnings in the past year.
  • In the past year ERIC had a positive cash flow from operations.
  • Of the past 5 years ERIC 4 years were profitable.
  • Each year in the past 5 years ERIC had a positive operating cash flow.
ERIC Yearly Net Income VS EBIT VS OCF VS FCFERIC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20B -20B 40B

1.2 Ratios

  • With an excellent Return On Assets value of 10.18%, ERIC belongs to the best of the industry, outperforming 85.42% of the companies in the same industry.
  • ERIC has a Return On Equity of 25.95%. This is amongst the best in the industry. ERIC outperforms 87.50% of its industry peers.
  • With an excellent Return On Invested Capital value of 15.64%, ERIC belongs to the best of the industry, outperforming 89.58% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for ERIC is in line with the industry average of 10.22%.
  • The last Return On Invested Capital (15.64%) for ERIC is above the 3 year average (11.82%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 10.18%
ROE 25.95%
ROIC 15.64%
ROA(3y)0.43%
ROA(5y)2.81%
ROE(3y)-0.28%
ROE(5y)6.78%
ROIC(3y)11.82%
ROIC(5y)12.32%
ERIC Yearly ROA, ROE, ROICERIC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 -20 -30

1.3 Margins

  • The Profit Margin of ERIC (12.01%) is better than 83.33% of its industry peers.
  • ERIC's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 14.08%, ERIC belongs to the top of the industry, outperforming 85.42% of the companies in the same industry.
  • In the last couple of years the Operating Margin of ERIC has grown nicely.
  • ERIC has a Gross Margin of 48.14%. This is comparable to the rest of the industry: ERIC outperforms 58.33% of its industry peers.
  • ERIC's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 14.08%
PM (TTM) 12.01%
GM 48.14%
OM growth 3Y7.54%
OM growth 5Y1.88%
PM growth 3Y20.32%
PM growth 5Y9.81%
GM growth 3Y4.83%
GM growth 5Y3.45%
ERIC Yearly Profit, Operating, Gross MarginsERIC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40

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5

2. ERIC Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ERIC is creating value.
  • The number of shares outstanding for ERIC remains at a similar level compared to 1 year ago.
  • Compared to 5 years ago, ERIC has about the same amount of shares outstanding.
  • ERIC has a better debt/assets ratio than last year.
ERIC Yearly Shares OutstandingERIC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B
ERIC Yearly Total Debt VS Total AssetsERIC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100B 200B 300B

2.2 Solvency

  • ERIC has a debt to FCF ratio of 1.38. This is a very positive value and a sign of high solvency as it would only need 1.38 years to pay back of all of its debts.
  • With a decent Debt to FCF ratio value of 1.38, ERIC is doing good in the industry, outperforming 70.83% of the companies in the same industry.
  • A Debt/Equity ratio of 0.32 indicates that ERIC is not too dependend on debt financing.
  • ERIC has a Debt to Equity ratio of 0.32. This is in the lower half of the industry: ERIC underperforms 68.75% of its industry peers.
  • Although ERIC's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 1.38
Altman-Z N/A
ROIC/WACC2.15
WACC7.29%
ERIC Yearly LT Debt VS Equity VS FCFERIC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B

2.3 Liquidity

  • ERIC has a Current Ratio of 1.29. This is a normal value and indicates that ERIC is financially healthy and should not expect problems in meeting its short term obligations.
  • ERIC has a Current ratio of 1.29. This is amonst the worse of the industry: ERIC underperforms 81.25% of its industry peers.
  • A Quick Ratio of 1.08 indicates that ERIC should not have too much problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 1.08, ERIC is doing worse than 79.17% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.29
Quick Ratio 1.08
ERIC Yearly Current Assets VS Current LiabilitesERIC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B

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4

3. ERIC Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 440.40% over the past year.
  • Measured over the past years, ERIC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.62% on average per year.
  • The Revenue has decreased by -4.52% in the past year.
  • The Revenue has been growing slightly by 0.37% on average over the past years.
EPS 1Y (TTM)440.4%
EPS 3Y13.71%
EPS 5Y9.62%
EPS Q2Q%36.79%
Revenue 1Y (TTM)-4.52%
Revenue growth 3Y-4.48%
Revenue growth 5Y0.37%
Sales Q2Q%-4.98%

3.2 Future

  • The Earnings Per Share is expected to decrease by -8.08% on average over the next years.
  • ERIC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.59% yearly.
EPS Next Y-24.42%
EPS Next 2Y-10.57%
EPS Next 3Y-4.53%
EPS Next 5Y-8.08%
Revenue Next Year-1.52%
Revenue Next 2Y-0.04%
Revenue Next 3Y0.92%
Revenue Next 5Y0.59%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
ERIC Yearly Revenue VS EstimatesERIC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 50B 100B 150B 200B 250B
ERIC Yearly EPS VS EstimatesERIC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 2 -2 4 6 8

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7

4. ERIC Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 11.98 indicates a reasonable valuation of ERIC.
  • Compared to the rest of the industry, the Price/Earnings ratio of ERIC indicates a rather cheap valuation: ERIC is cheaper than 93.75% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.60, ERIC is valued rather cheaply.
  • A Price/Forward Earnings ratio of 15.78 indicates a correct valuation of ERIC.
  • ERIC's Price/Forward Earnings ratio is rather cheap when compared to the industry. ERIC is cheaper than 85.42% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.84, ERIC is valued a bit cheaper.
Industry RankSector Rank
PE 11.98
Fwd PE 15.78
ERIC Price Earnings VS Forward Price EarningsERIC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ERIC is valued cheaply inside the industry as 85.42% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, ERIC is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 12.61
EV/EBITDA 8.02
ERIC Per share dataERIC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

  • The excellent profitability rating of ERIC may justify a higher PE ratio.
  • A cheap valuation may be justified as ERIC's earnings are expected to decrease with -4.53% in the coming years.
PEG (NY)N/A
PEG (5Y)1.24
EPS Next 2Y-10.57%
EPS Next 3Y-4.53%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. ERIC Dividend Analysis

5.1 Amount

  • ERIC has a Yearly Dividend Yield of 2.74%.
  • ERIC's Dividend Yield is rather good when compared to the industry average which is at 0.76. ERIC pays more dividend than 89.58% of the companies in the same industry.
  • ERIC's Dividend Yield is a higher than the S&P500 average which is at 1.88.
Industry RankSector Rank
Dividend Yield 2.74%

5.2 History

  • On average, the dividend of ERIC grows each year by 13.68%, which is quite nice.
  • ERIC has been paying a dividend for at least 10 years, so it has a reliable track record.
  • ERIC has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)13.68%
Div Incr Years5
Div Non Decr Years5
ERIC Yearly Dividends per shareERIC Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.1 0.2 0.3 0.4

5.3 Sustainability

  • 33.41% of the earnings are spent on dividend by ERIC. This is a low number and sustainable payout ratio.
DP33.41%
EPS Next 2Y-10.57%
EPS Next 3Y-4.53%
ERIC Yearly Income VS Free CF VS DividendERIC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20B -20B 40B
ERIC Dividend Payout.ERIC Dividend Payout, showing the Payout Ratio.ERIC Dividend Payout.PayoutRetained Earnings

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ERIC Fundamentals: All Metrics, Ratios and Statistics

ERICSSON (LM) TEL-SP ADR

NASDAQ:ERIC (4/2/2026, 8:21:21 PM)

After market: 11.72 +0.1 (+0.86%)

11.62

+0.17 (+1.48%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)01-23
Earnings (Next)04-17
Inst Owners57.49%
Inst Owner Change2.68%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap38.73B
Revenue(TTM)236.68B
Net Income(TTM)28.43B
Analysts55.86
Price Target10.19 (-12.31%)
Short Float %1.4%
Short Ratio4.01
Dividend
Industry RankSector Rank
Dividend Yield 2.74%
Yearly Dividend0.3
Dividend Growth(5Y)13.68%
DP33.41%
Div Incr Years5
Div Non Decr Years5
Ex-Date04-02
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)53.68%
Min EPS beat(2)29.76%
Max EPS beat(2)77.6%
EPS beat(4)4
Avg EPS beat(4)44.45%
Min EPS beat(4)20.62%
Max EPS beat(4)77.6%
EPS beat(8)6
Avg EPS beat(8)-30.16%
EPS beat(12)10
Avg EPS beat(12)-8.61%
EPS beat(16)10
Avg EPS beat(16)-9.98%
Revenue beat(2)1
Avg Revenue beat(2)1.05%
Min Revenue beat(2)-0.88%
Max Revenue beat(2)2.98%
Revenue beat(4)1
Avg Revenue beat(4)-1.6%
Min Revenue beat(4)-6.39%
Max Revenue beat(4)2.98%
Revenue beat(8)2
Avg Revenue beat(8)-1.04%
Revenue beat(12)3
Avg Revenue beat(12)-1.34%
Revenue beat(16)7
Avg Revenue beat(16)-0.7%
PT rev (1m)0%
PT rev (3m)8.77%
EPS NQ rev (1m)0.42%
EPS NQ rev (3m)4.92%
EPS NY rev (1m)4.28%
EPS NY rev (3m)5.05%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.14%
Valuation
Industry RankSector Rank
PE 11.98
Fwd PE 15.78
P/S 1.55
P/FCF 12.61
P/OCF 11.17
P/B 3.36
P/tB 6.92
EV/EBITDA 8.02
EPS(TTM)0.97
EY8.35%
EPS(NY)0.74
Fwd EY6.34%
FCF(TTM)0.92
FCFY7.93%
OCF(TTM)1.04
OCFY8.96%
SpS7.47
BVpS3.46
TBVpS1.68
PEG (NY)N/A
PEG (5Y)1.24
Graham Number8.69
Profitability
Industry RankSector Rank
ROA 10.18%
ROE 25.95%
ROCE 19.8%
ROIC 15.64%
ROICexc 23.58%
ROICexgc 47.63%
OM 14.08%
PM (TTM) 12.01%
GM 48.14%
FCFM 12.33%
ROA(3y)0.43%
ROA(5y)2.81%
ROE(3y)-0.28%
ROE(5y)6.78%
ROIC(3y)11.82%
ROIC(5y)12.32%
ROICexc(3y)17.47%
ROICexc(5y)18.15%
ROICexgc(3y)43.71%
ROICexgc(5y)45.38%
ROCE(3y)14.96%
ROCE(5y)15.6%
ROICexgc growth 3Y-6.32%
ROICexgc growth 5Y4.87%
ROICexc growth 3Y14.91%
ROICexc growth 5Y1.28%
OM growth 3Y7.54%
OM growth 5Y1.88%
PM growth 3Y20.32%
PM growth 5Y9.81%
GM growth 3Y4.83%
GM growth 5Y3.45%
F-Score7
Asset Turnover0.85
Health
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 1.38
Debt/EBITDA 0.83
Cap/Depr 42.29%
Cap/Sales 1.59%
Interest Coverage 15.11
Cash Conversion 78.04%
Profit Quality 102.67%
Current Ratio 1.29
Quick Ratio 1.08
Altman-Z N/A
F-Score7
WACC7.29%
ROIC/WACC2.15
Cap/Depr(3y)41.44%
Cap/Depr(5y)47.37%
Cap/Sales(3y)1.71%
Cap/Sales(5y)1.88%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)440.4%
EPS 3Y13.71%
EPS 5Y9.62%
EPS Q2Q%36.79%
EPS Next Y-24.42%
EPS Next 2Y-10.57%
EPS Next 3Y-4.53%
EPS Next 5Y-8.08%
Revenue 1Y (TTM)-4.52%
Revenue growth 3Y-4.48%
Revenue growth 5Y0.37%
Sales Q2Q%-4.98%
Revenue Next Year-1.52%
Revenue Next 2Y-0.04%
Revenue Next 3Y0.92%
Revenue Next 5Y0.59%
EBIT growth 1Y45.04%
EBIT growth 3Y2.72%
EBIT growth 5Y2.26%
EBIT Next Year9.14%
EBIT Next 3Y5.11%
EBIT Next 5Y2.67%
FCF growth 1Y-31.52%
FCF growth 3Y5.77%
FCF growth 5Y4.32%
OCF growth 1Y-28.77%
OCF growth 3Y2.21%
OCF growth 5Y2.64%

ERICSSON (LM) TEL-SP ADR / ERIC Fundamental Analysis FAQ

What is the fundamental rating for ERIC stock?

ChartMill assigns a fundamental rating of 6 / 10 to ERIC.


What is the valuation status of ERICSSON (LM) TEL-SP ADR (ERIC) stock?

ChartMill assigns a valuation rating of 7 / 10 to ERICSSON (LM) TEL-SP ADR (ERIC). This can be considered as Undervalued.


Can you provide the profitability details for ERICSSON (LM) TEL-SP ADR?

ERICSSON (LM) TEL-SP ADR (ERIC) has a profitability rating of 8 / 10.


What is the valuation of ERICSSON (LM) TEL-SP ADR based on its PE and PB ratios?

The Price/Earnings (PE) ratio for ERICSSON (LM) TEL-SP ADR (ERIC) is 11.98 and the Price/Book (PB) ratio is 3.36.


How sustainable is the dividend of ERICSSON (LM) TEL-SP ADR (ERIC) stock?

The dividend rating of ERICSSON (LM) TEL-SP ADR (ERIC) is 7 / 10 and the dividend payout ratio is 33.41%.